Payment for dissatisfactory services
Our company had signed a 2-year subscription agreement for availing research and advisory services company. However, after 1st quarter of availing the services, in the 2nd quarter, the quality and response of the service were deteriorated and we were making all attempts to avail the services as per the expectations set forth. Thus, we didn't pay for the 2nd quarter invoices raised by the Service Provider and sent them the written notice to cancel our subscription to the services After the notice, they continued to chase us and expected us to resume the services on the promise that they will improve their services for better. However, we were convinced by this time of no improvement from their side and thus we continued to insist that we want to cancel our subscription at which point they raised the point of our non-cancellable Agreement we have with them for 2 years. What are the options we have for responding to the Legal Notice we have received and how we should protect the rights of our company to pay for only those services which meet our satisfaction and not pay for services which we choose not to avail? Thanks Sandeep
I can advice you only after going through your File and Papers, as there are many possibilities.
Better advice can be given if you are clear about your Location while putting the Query, as sometimes procedure may differ from Authorities to Authorities.
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Read the contract document carefully specially the clause regarding quality of the services. If your contract has some criteria regarding quality of services that the other party should provide, and they have failed to meet the minimum standard then you can cite those shortcomings in your formal cancellation of contract letter to the other party. However if the contract does not contain any such clause and is silent on the quality of services to be provided then you can cite the letters from the other company in which they have confessed that their services are below par and they will improve them in the future. As it is their admittance of the fact that their services were below the requisite standard and it may make a valid ground for cancellation of your contract.
Now let's come to the worst case scenario, if your contract is watertight and the non cancellation clause is impregnable then also you can terminate the contract as the poor quality of services will adversely affect the name of your firm, however you may be held financially liable for all the foreseeable damages suffered by the other company as a result of your breach.
All contracts should be entered carefully and taken very seriously – they can only be canceled if certain conditions are met. If you have trouble meeting the terms of a non-cancelable contract, make every attempt to work it out with the company before you miss a payment.
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